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Data:2009-12-12 2:34
Section RSI indicator principle and calculation method
A, RSI indicator principle
Relative Strength Index RSI is based on the stock market on the balance between supply and demand principle, by comparing a period of time an individual stock price changes, the magnitude or the overall market index, the size of the ebb and flow to analyze the long-short market, both to determine the sale of power intensity level, thereby to determine a technology future market trend indicator.
It is constructed from the principle point of view, with the MACD, TRIX and so tend to the same kind of indicators is that, RSI indicator is a single stock or index of the fundamental changes the whole market trends analysis, with the MACD, TRIX, etc. The difference is that, RSI indicator is a First find the number of times an individual stock's closing price or the closing index of the entire index of the strength of a number of times, rather than directly to the stock's closing price or the stock market indices of smoothing.
Relative Strength Index RSI is a certain period of time the market rise and rise with the ratio decreases. It is the sale of power in numbers and graphics on the embodiment, investors can they reflect changes in circumstances and trajectory of the stock market to predict future price movements. In practice, people usually tie in with the moving average line to use, in order to enhance market forecast accuracy.
2, RSI indicator is calculated
Relative Strength Index RSI formula, there are two
First: Suppose A is N days, the closing price of the positive and, B for N days, the closing price multiplied by the sum of the negative (-1)
So, A and B are positive, will be A, B substituted into the RSI formula, then the
RSI (N) = A ÷ (A + B) × 100
Second:
RS (relative strength) = N days, the number and the average closing prices go ÷ N days, the number and the average closing rate of reduction
RSI (Relative Strength Index) = 100-100 ÷ (1 + RS)
Although these two formulas are different, but the results of the calculation the same.
RSI indicator to 14, for example, from when the starting date, pushed down, including the date of closing, including 15 to each day's closing price minus the previous day's closing price, are 14 values, these values are positive there negative. This, RSI indicator calculated as follows:
A = 14-digit number of the Chiang Kai-shek and the
B = 14 numbers in the negative sum multiplied by (-1) RSI (14) = A ÷ (A + B) × 100
Where: A is 14 upward fluctuations in the size of the Sino-Japanese stock prices
B 14 downward fluctuations in the size of the Sino-Japanese stock
A + B for the price fluctuations in the size of the total
The formula for calculating RSI is actually a reflection of a certain stage of price volatility arising from fluctuations in the percentage of the total rate, the percentage the greater the strength of the more obvious; the percentage of the smaller, more obvious weakness. RSI values ranging between 0-100. In arriving at a certain day RSI value after the smoothing operation can be used after the RSI values calculated, according to RSI values on the plot even into the curve, that is, RSI line.
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And other indicators, like the calculation, due to the different choice of compute cycles, RSI indicators also include the day RSI indicator, weekly RSI indicator, month, year RSI indicator RSI indicators RSI and other indicators as well as minutes of various types. Frequently used is the day the stock market judged RSI indicators and weekly RSI indicator. Although the calculation of the value of their different, but the basic method of calculating the same. In addition, with the stock market software analysis and technological development, investors need only grasp the RSI form the basic principle and calculation method, not to calculate the index value, is more important is the use of RSI indicator to analyze, analyzing stock quotes.
II General judged the standard RSI
RSI's analysis is mainly around the RSI values, long-term and short-term RSI cross-RSI condition and shape of the curve of RSI started. General analysis methods include the size range of RSI values, RSI values oversold overbought condition, long and short term RSI line positions and cross and so on.
1, RSI values of the size of the
RSI changes in the range of 0 - 100 between the strong and weak indicators of the value of general distribution in 20 - 80. Figure (2-1) indicated.
RSI value of the market characteristics of investment operations
80 - 100 strong sell
50 - 80 Strong Buy
20 - 50 Weak wait and see
0 - 20 very weak buying
Figure (2-1) RSI indicator values
Here's "extremely strong" and "forced", "weak", "very weak" is a relative analysis of the concept is a relative area. Some investors may also value them for 30,70 or 15,85. In addition, for the RSI by taking the different parameters and different stocks, RSI will be judged the size of the values are different in detail in the following part of the re-introduction.
2, RSI overbought oversold values
In general, RSI values of 80 above and below 20 as overbought oversold zone boundary.
1, when the RSI values of more than 80 hours, then the whole market is too severe, multi-party power is much greater than Kongfangliliang, the balance of power disparity between the two sides, multi-party victory, the market is overbought, the follow-up Quotes likely to be a callback or transfer potential at this time, investors can sell the stock.
2, when the RSI value below 20 o'clock, then selling more than buying on the market, Kongfangliliang stronger than the multi-power, large-scale attack on the short side, the market's drop is too large, has been oversold, stock prices may rebound or transferred to potential investors may be appropriate Jiancang, buy stocks.
3, when the RSI value is about 50 hours, indicating the market is in sideways, investors may wait and see.
4, for the definition of overbought oversold zone, investors should be based on a market's specific circumstances. In the general market, RSI values of 80 and above can be referred to as overbought zone, 20 the following can be referred to as oversold zone. But sometimes in the special Change Quotes in, RSI oversold overbought zone delineation depends on the specific circumstances. For example, in a bull market or for Niugu, overbought area will be set at 90 over, while in a bear market or for Bear shares oversold zones can be set at 10 below (for this is small relative to the parameter settings in terms of RSI , if the parameter is set large, then the RSI is difficult to reach 90 above and 10 below).
Third, long-line of the intersection of the short-term RSI
The short-term RSI refers to the parameters of a relatively small RSI, the long-term RSI refers to the parameters of a relatively long RSI. For example, 6, RSI and RSI of 12, 6, RSI shall be short-term RSI, 12 Ri RSI shall be a long-term RSI. RSI cross line of short and long term situation can be judged as our Quotes approach.
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2, when the short-RSI <long RSI, the market belongs to short the market;
3, when the RSI line at low short-term break up the long-term RSI line, generally RIS indicators "golden cross" for the buy signal;
4, when the RSI line at a high short-term break down long-term RSI line, generally RSI indicator "death cross" for the sell signal.
3 RSI special analytical methods
A, RSI curve shape
When the RSI indicator at the high or low sideways consolidation occurs when the various forms for judging market, buying and selling of a decision analysis method.
1, when the RSI curve at a high level (above 50) to form M head or triple top reversal patterns such as high, the mean increase in stock price momentum has been depleted, there may be a long-term reversal stock market, investors should sell the stock in a timely manner . If the stock prices have been a curve is more similar patterns can be confirmed, they fell to magnitude and process can refer to M and so on top of the head or triple top reversal pattern's analysis.
2, when the RSI curve in the low (50 below) and the formation of W at the end or triple bottom reversal patterns such as low, the mean fall in stock price momentum has been weakened, the stock may be to build a long-term bottom, bargain-hunting investors Jiancang batches. If the stock prices have been a curve is more similar patterns can be confirmed that the rate of increase and the stock price process can refer to W at the end or triple bottom reversal patterns at the end of such judgments.
3, RSI at the top of inverted curve shape to determine the accuracy of Quotes is higher than the bottom of the form
2, RSI curve deviated from the
RSI indicator is the RSI indicator departure from the trend of the curve and the price just the trend of K charts the direction of the opposite. Departure from the RSI indicator is divided into two kinds of departure from the top and bottom departure.
(1) when the RSI at the top of departure from the high, but in the near future create a new high of RSI, but the formation of a peak a peak lower than the trend at a time when K-line diagram of the stock once again hit a new high, the formation of a peak than a peak height of the trend This is the top of departure. Top of the phenomenon are generally depart from the forthcoming reversal stock at a high level signal that stock prices will fall shortly, is to sell signals.
In practice, trends in, RSI indicators showing departure from the top is pulled up the share price into the process, first create a high point, RSI indicators over the corresponding 80 hit a new high point, after which a certain level of share prices down to adjust , RSI has also declined as the price trend adjustments. However, if the stock price up again and go beyond previous highs hit a new high point, while the RSI is also reflexive as the stock price up but did not crossed the previous high point began to fall, which form the top of departure from the RSI indicator. RSI occurs after departure from the top, the stock peaked more likely to drop, it is more a strong sell signal.
(2) at the end of departure from the
RSI's departure from generally appear in the bottom 20 below the low zone. When the K-line chart of the stock price way down, forming a wave of low-Bobby trend, while the RSI line has taken the lead stabilized at low levels stabilized, and the formation of a high-end than the one at the end of the trend, which is at the end of departure. Departure from the general presage the end of the phenomenon of short-term stock price is likely to rebound in the short term buy signal.
With the MACD, RSI and other indicators like the departure from the phenomenon of judgments, RSI's departure, the departure from the top of the judged accuracy is higher than that at the end of departure. When the stock price at a high level, RSI appears in more than 80 departures from the top can be considered stock will reverse a downward trend, investors can sell the stock in time; while the share price low, RSI has also appeared at the end of departures from the low, generally repeated several times at the end of departure to confirm, and investors can only do Jiancang or do short-term investment strategy.
3, the parameter changes
From the RSI indicator can be seen that the calculation of RSI index is based on time parameters, constitute the parameters of the time period can be days, months or weeks, years, minutes, etc., and these time periods also the length of time the stock market and investors trade-offs, in theory, can take any length of time, but in the majority of the stock market analysis software, the changes in the scope of the various time periods they are more often restricted to 1 - 99 in, such as 1 - 99 days, a Week - 99 Week.
From the practical application of RSI indicators point of view, most investors have chosen the time cycle parameters, the Japanese, while the RSI indicator on the use of parameters, but also mostly confined to the 6 and 12, such as a small number of parameters. If these short-time parameter to analyze stock trends, the RSI indicator values derived from the range of variation mostly in the 40 - 80, and which the frequency fluctuation is too cumbersome. In such a small space, would like to use RSI curve to more accurate judgments Quotes trend was not easy, therefore, investors should make full use of various types of stock market analysis provided by a variety of short-and long-term day parameters, combined with K Line, averages, etc. theory to analyzing stock market trends comprehensive. Try the following sections on the parameters through the use of different indicators correspond to the timing of the different trading methods to resolve this problem.
RSI indicators for the fourth quarter combat skills
And compared with other indicators, RSI indicator often volatile, and its predicted trend is not very evident in the stock market in real judged, often lead investors to feel confused and disorderly. To solve this problem, where the stock market analysis software analysts use two different sets of Day (12,72) and Day (9,12) parameter to indicate the sale of about RSI indicator function.
1, the sale of the signal
(A) 12 RSI and 72 Day RSI trading function of a combination of
1, when the 12 RSI curve in the vicinity of 50 Value 72 Day RSI curves upward to form a breakthrough, "Jin Cha", the show is stronger than the stock bull forces began to short the power, the stock will be substantially rose, which is directed by middle RSI indicator to buy signal. Especially when the stock price also break up with the amount of long-term moving average, this buy signal more accurate. At this point in time bargain-hunting investors should buy stocks. Figure (2-2) as shown.
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2, when the 12 RSI curves and 72 days RSI values above the curve at 60 is running a relatively long time, once the 12 RSI curves downward curve of the formation of a breakthrough 72 days "Sicha", the show that the forces have been weakened bull, stock prices will be started to fall significantly, which is RSI indicator to the short-term sell signal. Especially for those early or too large stocks, which sell signal more accurate. At this point, investors should leave clearance in time. Figure (2-3) as shown.
3, when the 12 RSI curves and 72 days RSI curve from the peak down to near 50, once the 12 RSI curves downward curve 72 day RSI, it means long the forces have been weak, short-strong force began, the stock will face a sharp fall likely, this is indicated by the RSI indicator midline sell signal. Especially for those high consolidation of the stock, which sold the signal more intense. At this point, investors should also be the center line on the sidelines. Figure (2-4) as shown.
(B) 9 RSI and 12 transactions a combination of features RSI
1, when the 9 RSI and 12 RSI values below the curve at 50, almost the same time, break up value of 50 indicators of long-short of this balance RSI line, shows that the power started to bull the stock, the stock will be upward, which is RSI indicator midline indicated by buy signal. Especially after the current period stock price in a narrow range of finishing, and then with the amount of a breakthrough, this buy signal more accurate. At this point, investors should buy shares in time. Figure (2-5) as shown.
2, when the 9 RSI curves and 12 RSI values above the curve in 80 run-time, once on the 9th RSI curves and 12 RSI curves is almost the same time breaking down this line 80 hours, indicating that the stock bull forces began weakening, the stock faces downward adjustment of the pressure, which is directed by short-term indicators of RSI sell signal. Especially for the short-term or large stocks, such a sell signal more intense. At this point in time short-term investors should stay on the sidelines. Figure (2-6) as shown.
3, when the 9 RSI curves and 12 RSI curves from the peak down to near 50, if these two lines can not be re-Fan Shen up shortly, once on the 9th RSI curves and 12 RSI curves downward break 50 on the forces began a powerful means short, stock prices fell sharply to face the possibility, which is indicated by the center line of RSI indicator sell signal. Especially for those high consolidation of the stock, which sold the signal more intense. At this point, investors should also be the center line on the sidelines. Figure (2-7) as shown.
Second, shareholders holding cash at hand signal
(A) 12 RSI and 72 Day RSI combined holdings, holding cash at hand function
1, when the RSI curves in 12-bit (50 or so) break up after the 72 day RSI curve, if the two curves upward at the same time to run, and the stock price with a quantity of rows, it indicates that long a dominant force, the stock will continue to on the rose, which is the more obvious indicators of RSI to be holding up the signal. At this point, investors should be firmly held up until the RSI indicator to issue short-term sell signal. Figure (2-8) as shown.
2, when the 12 RSI curves in the high (60 and above) 72 days breaking down the curve, it has been run in 72 days under the curve, it meant that long power may weaken and the power started to short the stock will be adjusted downwards, This is the RSI indicator is directed holding cash at hand waiting to see the signal. Especially for high stock prices began to fall after the consolidation of the stock, such holding cash at hand waiting to see the signal more accurate. At this point, investors should wait and see the main holding cash at hand. Figure (2-9) as shown.
3, when the 12 RSI curves in the high (50 and above) 72 Day RSI curves break down, if the two curves downward at the same time to run, this indicates that the forces have been long failure, short power occupy a distinct advantage, the stock will begin to decline sharply This is also indicated by the RSI indicator rather obvious holding cash at hand waiting to see the signal. At this point, investors should wait and see holding cash at hand. Figure (2-10) as shown.
4, when the 12 RSI curves and 72 days after the RSI dropped from a high curve, if it has two curves below 50, while running down that bears a dominant power, the stock will continue to fall, which is RSI indicator clearly holding cash at hand waiting to see the signal. At this point, investors should wait and see firmly holding cash at hand. Figure (2-11) as shown.
(B) 9 RSI and 12 RSI combined holdings, holding cash at hand function
1, when the 9 RSI curves and 12 RSI curve in the medium (50 or so) to run up almost simultaneously, and also relying on short-term moving average share price run up, then that bull forces began to dominate the stock will begin a rise in market, which is the more obvious indicators of RSI to be holding up the signal. At this point, investors should be firmly held up until the RSI indicator to issue short-term sell signal. Figure (2-12) as shown.
2, when the 9 RSI curves and 12 RSI curves at a high level (80 or so) almost the same time running down that long has weakened the strength, the power started to short the stock will appear to adjust short-term market, which is directed by RSI indicator of holding cash at hand waiting to see the signal. Especially for the recent short-term or excessive stocks, such short-term holding cash at hand waiting to see the signal more evident. Figure (2-13) as shown.
3, when the 9 RSI curves and 12 RSI curve in the vicinity of 50, if the two curves is almost the same time below 50, to run, the show that bears a dominant power, the stock will continue to fall, which is RSI indicator directed by holding cash at hand waiting to see the signal. Especially for those early or too large too large stocks, which signal more evident. At this point, investors should wait and see firmly holding cash at hand.
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